Pyramidal structure in group companies in terms of corporate governance and the related legal results

The pyramidal ownership structure, a special form of the group companies, can be defined as a chain of control created by controlling company with direct and indirect control over its subsidiaries. Through this structure, although the controlling company contributes a lower share capital amount especially to the subsidiaries at the lower tiers of the pyramid, it could obtain a greater controlling power independent of the amount of its capital share. Thus, the cash flow rights and the controlling rights of the controlling company are being seperated from each other. This seperation may have negative consequences for the shareholders and the creditors of the subsidiaries and in the general sense corporate governance. While pyramid structures are subject to the group companies provisions, it should be examined specifically in terms of corporate governance problems that arise with its indirect control over its subsidiaries. In this study, after the explanation of the concept of pyramid structures, which is a special form of group companies, comparision of the pyramids to the similar concepts and the positive and negative aspects of pyramid structures have been examined. In the later parts of the study, the characteristic points of the listed companies in a pyramid structures have been emphasized; corporate governance based solutions have been stated to the corporate governance problems caused by pyramid structures.